|+ OM Materials (S) Pte Ltd (OMS)|
|+ OM (Manganese) Ltd (OMM)|
|+ OM Materials (Qinzhou) Co Ltd
|+ Northern Iron Limited|
|+ Shaw River Resources Limited|
OM (Manganese) Ltd (“OMM”) is wholly owned by OM Holdings Limited with its core operating business activities being exploration and mining of manganese at the Bootu Creek Project. The Bootu Creek Manganese Mine is located 110km north of Tennant Creek in the Northern Territory of Australia and OMM’s principal administration office is located in Perth, Western Australia. The exploration and development of the Bootu Creek Project commenced in September 2001. Mining operations commenced in November 2005, its first batch of ore was processed in April 2006 and first shipment of ore was facilitated in June 2006.
The main tenements are located within the Bootu Creek Project area, where the mining and processing operations are currently based and where all currently defined Mineral Resources and Ore Reserves exist. The exploration techniques employed by OMM include satellite imagery, surface prospecting, geochemical sampling, geophysical surveys and drilling. The Bootu Creek Project area contains a number of manganese deposits including the abandoned Muckaty mine, worked from shallow open pits between 1955 and 1963. The individual mineralised horizons are generally strata bound in character and can persist over strike lengths of up to 3 km. The Mineral Resources defined to date at the project are long shallow, gently dipping deposits amenable to open pit mining.
The Renner Springs Project area is located approximately 60 km northwest of the Bootu Creek mine site and consists of Exploration Licences covering an extensive dolomite-siltstone sequence in the Shillinglaw Formation which hosts several shallow dipping and flat lying manganese occurrences. The outcropping manganese mineralisation has been reconnaissance-tested by shallow open hole percussion drilling and several ore grade zones were intersected.
The Helen Springs Project (also referred to as Milla Milla) is located approximately 30 km north of the Bootu Creek mine site and is a northern extension of the Bootu and Attack Creek formations, which host the Bootu Creek Project manganese deposits. Several low lying manganese outcrops have been identified in regional mapping and tested by limited shallow open hole percussion drilling and two recent costeans.
A highly successful 2009 exploration program at Bootu Creek resulted in an 8% increase in the total Mineral Resources as at 31 December 2009 to 32.9million tonnes at 23.1% Mn (31 December 2008: 30.6million tonnes at 24.1% Mn). Ore Reserves contracted by 1.9million tonnes to 20.5million tonnes at 21.4% Mn as at 31 December 2009 after adjusting for mining depletion during 2009 (31 December 2008: 22.4million tonnes at 22.1% Mn).
The upgrade of the Bootu Creek mine – has successfully extended the life-of-mine plan based on the Mineral Resource inventory to over 13 years based on the actual 2009 ore mining rate of 2.4Mtpa and proven production capability of 1,000,000tpa of high-grade manganese.
Mining and Processing
Mining at the Bootu Creek Project is carried out using a conventional open cut method of mining, blasting and excavation using hydraulic excavators and dump trucks. The processing plant utilises two-stage crushing, scrubbing and heavy media cyclone and drum plants to produce fines and lump product at a nominal design rate of 550,000 tonnes per year. The plant is currently operating at above design capacity and is scheduled to produce approximately 680,000 tonnes of 38% Mn product for the year ending 31 December 2009 from processing 2.3 million tonnes of mined ore.
OMM is currently enlarging the existing operations - including the Bootu Creek Secondary Processing Plant, expansion of the existing processing facility, the establishment of a new standalone production facility supported by development potential at the Renner Springs exploration project and expansion of the current Muckaty Rail Siding.
Logistics and Export
Manganese product is transported from the mine site 60 kilometres to the Muckaty Rail Siding on a sealed private road and then approximately 800km to the Port of Darwin utilising the Alice Springs to Darwin rail line. Further lay down of manganese product is done at the rail head at the Port of Darwin and eventually the manganese product is transported to the port shiploader and loaded onto ships for shipping to overseas markets including China, India and Iran.
Northern Territory Chief Minister's Export and Industry Awards: Winner Emerging Exporter category for 2nd Year in a row
OMM was again pleased to be nominated in two categories of the Northern Territory Chief Minister's Export and Industry Awards which recognise the Territory's leading exporters. At a function held in Darwin during September 2009, OMM was announced the winner of the 2009 Emerging Exporter Award. Following this success OMM have automatically progressed into the Australian National Export Awards which will be held in Canberra in November 2009
2009 Australian Mining Prospect Awards
OMM have progressed as a Finalist in four categories for Mine of the Year, Metalliferous Mine of the Year, Mineral Processing Plant of the Year and Excellence in OHS of the 2009 Australian Mining Prospect Awards. The Awards recognize the excellence in mining and mine management through out the 2008/ 2009 year. The Award ceremony will be held in Sydney in November.
The Northern Land Council is responsible for representing traditional land owners and the indigenous community across the Northern Territory. OMM was nominated in the 2008 Northern Land Council Employer Excellence Awards in two (2) categories for Top Project of the Year, and Top Employer of the Year. Alan Brown, Occupational Health and Safety Manager, was also nominated in a 3rd category for Top Individual. OMM was announced the Top Employer of the Year at the awards dinner, held in Darwin. This further serves to reflect OMM’s continuing support of the Indigenous community.
The Australian Export Awards are acknowledged by the business community as the most prestigious industry awards, recognizing and rewarding excellence and innovation in exporting. The program showcases Australia’s leading exporters and has proved to enhance the corporate profiles of National Winners’ and Finalists’ reputation both domestically and internationally.
OMM was proud to be not only nominated in two categories, but also the winner of the 2008 Emerging Exporter Award in the Northern Territory Export Awards.
OMM passed the millionth tonne milestone with a 28,000 tonne shipment which left the Port of Darwin in June 2008. An official function to mark the milestone was held at Parliament House in Darwin which was attended by the Chief Minister of the Northern Territory, The Hon Paul Henderson. The shipment of the millionth tonne of manganese ore from Bootu Creek occurred approximately two years after the commissioning and start-up of the operation.